Key facts
- The EU is urging the UK to raise tariffs on Chinese-made cars.
- Sales of Chinese hybrid cars in the EU have surged to 160,662 in the first seven months of this year, up from 659 in 2022.
- Sales of Chinese plug-in hybrid vehicles in the EU rose to 217,764 in the first seven months of this year, from 56,706 in 2022.
- The German Association of the Automotive Industry (VDA) called for a comprehensive assessment of trade safeguards on Chinese hybrids.
- Hybrid cars now account for almost 37% of the overall EU car market.
- BYD sold 177,000 units in the EU in the first eight months of the year, a 163% year-on-year increase.
- Geely sold 205,000 cars in the EU in the first eight months of the year.
- Tesla sold 142,000 cars across the EU in the first seven months of the year.
- The EU's trade deficit with China has reached €1.18 billion a day.
- EU trade commissioner Maroš Šefčovič and his Chinese counterpart Wang Wentao will meet on October 8 and 9.
The European Union is pressuring the UK to align its tariffs on Chinese cars with the bloc's, aiming to prevent the UK from becoming a conduit for Chinese goods into the EU market. This push comes as sales of Chinese hybrid cars in the EU have surged dramatically in the past year and a half, raising alarms within the European automotive industry and Brussels.
Data shows that sales of Chinese-made fully hybrid cars in the EU jumped from 659 in 2022 to 160,662 in the first seven months of this year. Similarly, plug-in hybrid sales rose from 56,706 in 2022 to 217,764 in the same period. These figures have prompted the EU to ask China to voluntarily reduce its hybrid exports or face potential safeguards like quotas.
The German Association of the Automotive Industry (VDA) has indicated a willingness to consider tariffs on Chinese hybrids, urging the European Commission to conduct a thorough assessment of trade safeguards and to utilize WTO-compliant instruments to ensure a level playing field.
Hybrid cars now constitute nearly 37% of the EU car market, with electric cars making up over 21%. Chinese manufacturers like BYD and Geely are making significant gains, with BYD sales increasing by 163% year-on-year to 177,000 units and Geely selling 205,000 cars in the first eight months. Both have surpassed Tesla's sales of 142,000 units in the EU during the first seven months.
European carmakers, such as the Volkswagen group, still lead the market with 2 million cars sold in the first eight months. The EU's trade deficit with China has reached an unsustainable €1.18 billion per day. EU trade commissioner Maroš Šefčovič is scheduled to meet his Chinese counterpart Wang Wentao on October 8 and 9 to seek a truce.